AWS announces it is in the early stages of an AI agent transition, with $150 billion annual revenue run rate and internally designed chips positioning it competitively.

AWS delivered a $150 billion annual revenue run rate and is transitioning to the era of AI agents—software that thinks through problems and carries out tasks—rather than relying solely on GPU-style chips for model training.

AWS offers both its own chips (Trainium for AI workloads and Graviton for CPU tasks) and Nvidia's GPUs, giving customers a complete portfolio for AI needs. By scaling its Trainium chip, Amazon says it will save tens of billions of capex dollars annually.

AWS represented 60% of Amazon's total operating income in the latest quarter. Chief Andy Jassy stated during the earnings call that AWS is 'unusually well-positioned for this AI inflection' and in the early stages of this growth story.